Do you need boat insurance?
If your boat is being used strictly for pleasure, there are only a handful of states that mandate that you have boat insurance. However, if you are financing a boat, most lenders will require you to have comprehensive and collision coverage for your watercraft. Some marinas and harbors will also require you to show proof of liability coverage if you plan to dock there. Similar to an auto policy, sufficient liability coverage is always recommended regardless of the value of your watercraft.
A common misconception that we run across is that you and your boat will be properly covered under your homeowner’s policy. Although your homeowner’s policy may offer some protection, it won’t offer the kind of coverage you need on the water, especially if you are operating a large powerboat. Because powerboats have larger motors, they will typically be more expensive and be more accident-prone.
What is covered?
Most of the below coverages will be offered by our preferred carriers. Something to keep in mind is that boat insurance typically will not cover maintenance or wear and tear for your watercraft.
Damages/Injuries You Cause
Liability: Pays for any damages or injuries you cause while boating, including:
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Damage to other watercraft
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Damage to objects (docks, pilings, other boats, etc.)
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Other boaters’ and their passengers’ injuries
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Injuries to your passengers, including those skiing, boarding, or tubing
Damages To Your Boat From Events Beyond Your Control
Comprehensive: Covers events out of your control, such as:
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Theft and vandalism
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Explosions and fire
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Hurricanes, lightning, and other weather-related damage
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Falling trees or other objects
Damages To Your Boat From An Accident
Collision: Covers any damage to your boat if you collide with another watercraft or object (even if it’s submerged), regardless of fault. You’re also covered if your boat capsizes.
Damages Or Injuries From Uninsured Boaters
Uninsured/underinsured boater bodily injury: Covers injuries you suffer at the hands of an uninsured or underinsured boater, up to the limits of your policy.
Your Injuries
Medical payments: Pays for the medical bills for you and your passengers if you’re in a covered accident, regardless of fault. In some states, this coverage will begin once you’ve exhausted your health insurance coverage limits.
There are a variety of additional coverages that can be added to your policy, including:
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Total Loss Replacement
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Trailer Trip Interruption
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Fishing Equipment Coverage
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Water Sports Coverages
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Roadside Assistance
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Accident Forgiveness
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Disappearing Deductibles
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Mechanical Breakdown Coverage
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On-Water Towing
How is your premium determined?
Our carriers will look at a variety of factors that will contribute to how the premium is calculated for your boat insurance policy. Below are a couple of essential parts of the process:
Claims History: If you don’t have a record that points to auto or boat insurance claims, then the carrier be less likely to consider you a risk on the water.
Type of Boat: Just like an auto policy, your boat’s year, make and model will be considered in how your premium is determined. Newer boats will generally cost more to replace and boats that are designed for speed will generally cost more to insure than a lower performance boat. Whether there is an inboard or outboard motor on the boat will also affect your rate.
Your Boat Experience: The more time that you have spent on the water, the better. Experienced boaters are less likely to have an accident. Completing a water safety course may also help bring down the cost of your boat policy.
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Source: Progressive